Observatorio de I+D+i UPM

Memorias de investigación
Research Publications in journals:
Feasibility of a Cash Forward Contract: An Application to the French and Spanish Potato Sectors.
Year:2007
Research Areas
  • Agricultural policy,
  • Applied economics
Information
Abstract
This study examines a cash forward contract that a growers'cooperative or association may offer producers to lock in a fixed price for their output+ To cover the forward contract¿s risks, the cooperative would set up a stabilization fund, and as an option, may hedge with futures contracts. The authors evaluate both strategies¿ costs, which would be charged to the growers signing in the CFC in the form of a fee+ By comparing this fee with farmers' willingness to pay, it is determined whether growers' would be interested in the forward contract. The scheme is tested on a selection of Spanish and French potato varieties, with reference to the "April" futures contracts traded on the Amsterdam exchange. The authors conclude that hedging with futures may help to reduce the cooperative's exposure to financial risk, but, on average, the stabilization fund alone is more effective without hedging+ Risk-averse growers may be interested in CFCs to reduce their revenue instability
International
Si
JCR
No
Title
Agribusiness: an International Journal
ISBN
0742-4477
Impact factor JCR
0
Impact info
Volume
23
Journal number
2
From page
245
To page
261
Month
SIN MES
Ranking
Participants
  • autor: María Bielza-Díaz (JRC - Italia)
  • Autor: Jose Maria Sumpsi Viñas (UPM)
  • Autor: Alberto Garrido Colmenero (UPM)
Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Economía Agraria y Gestión de los Recursos Naturales
  • Departamento: Economía y Ciencias Sociales Agrarias
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